The city of Harrisburg is Ground Zero for America's municipal debt crisis.

Pennsylvania's capital city has liabilities estimated at $610 million, which is nearly ten times its annual budget. The city is so deep in the red that last year it attempted to file for bankruptcy. Reckless spending did more than ruin Harrisburg's balance sheet; it crowded out private industry and distracted from the city's core functions. Today, Harrisburg is a dangerous, poverty-stricken city, with failing schools and a shrinking population.

Harrisburg's fiscal nightmare may be a harbinger of things to come for American cities. In the mid-90s, local governments embarked on a spending binge, bringing total municipal debt in the United States to more than $2.8 trillion. Along with Harrisburg, Jefferson County, Alabama, Vallejo, California, and Central Falls, Rhode Island have filed for bankruptcy in the past few years. Several more cities are on the brink of default, largely thanks to taxpayer-financed stadiums, museums, housing, commercial complexes, other misconceived economic development projects, and runaway public sector salaries, pensions, and benefit packages.

Is your hometown the next Harrisburg?

Shot, edited, written, and produced by Jim Epstein, who also narrates.

Posted Feb-16-2012 By

spikeo

Unfortunately we have same problems across all cities and towns. In my suburban city property tax nearly doubled since 2007. Every six moth, they sneak in tax levies in special elections that only interested parties vote for. Most recent one is 30 million highway overpass/exit project that will serve a private land developer whom has purchased huge chunks of land.

Although they publicly promise more bushiness and jobs, all they are doing are giving out 20 year tax abatement to the large corporMore..ations that setup shop at citizens expense. What do you think gonna happen when tax abatement runs out, those corporations will move out and it will be another derelict industrial park.Less..

Posted Feb-16-2012 By

grindkore

Harrisburg has always been a shit hole this is nothing new. I used to work for a construction company who worked a lot inside Harrisburg. The part of the video where he says about how dangerous the city is was no joke. I've seen some fucked up things happen in the city while working. This is a perfect example of what incompetent morons can do in positions of power.

Posted Feb-16-2012 By

downhill2400

I think we are witnessing the last stages of an economic cycle. The economic model we've always known is winding down and will soon be finished. When the new model will be started, I don't know but this model is dead.

Posted Feb-16-2012 By

BanAngelos

Posted Feb-16-2012 By

ggppgg

Isn't there an opportunity for tearing down some derelict houses and converting the land to agriculture (organic)? This would create jobe and feed the people, or maybe is the idea too darn simple it ain't sexy enough?